YahSat pays out $53m dividend
September 22, 2022
Abu Dhabi-based satellite operator Yahsat will pay out an interim dividend of AED 196.6m ($53.5m) by October 14th.
Yahsat says its interim cash dividend covers the first half-year’s trading for 2022. The interim dividend will be paid by to all shareholders of record and is equivalent to 8.06 AED fils per share.
On an annualised basis, the operator says it is on track to deliver a total dividend of at least AED 393.3 million for the full 2022 financial year, an increase of 2 per cent over the prior year and reinforcing its commitment to delivering attractive shareholder returns.
This suggests a 5.8 per cent annual dividend yield for 2022 (based on a closing share price of AED 2.78 on September 20th 2022). Yahsat says its second (and final) dividend for 2022 is expected to be paid in April 2023, subject to the usual Board of Directors’ recommendation and shareholders’ approval at the next annual general assembly.
Speaking about the dividend, Musabbeh Al Kaabi, Chairman of Yahsat, said: “Since our listing on the ADX stock exchange in 2021, we have demonstrated sustained growth and resilience in the face of challenging macroeconomic conditions. Our strong year-to-date performance was evident in our first-half results, when we recorded our highest-ever revenue for the period with significant growth in Adjusted EBITDA and Net Income. With good visibility on future earnings, and contracted future revenue exceeding AED 7.7 billion, equivalent to 5.2 times our 2021 annual revenue, we are in a solid position to continue to reward shareholders. This interim dividend reaffirms our commitment to grow the dividend by at least 2% per year, and we are on track to pay a total dividend of at least AED 393.3 million for the full year.”
Ali Al Hashemi, Group CEO at Yahsat, added: “We are committed to pursuing new growth opportunities and we are confident that our robust balance sheet, agile and resilient business model, and proven track record, will continue to enable us to capture long-term value. Our dividend policy is well-supported by strong discretionary free cash flow, which we expect to be approximately twice our full-year dividend payment for this year. The strength of our business today, coupled with our confidence in future revenues and profitability, provide a solid foundation for creating shareholder value through a combination of attractive dividends and growth.”
In August 2022, with approximately 90 per cent of the projected annual revenue for 2022 already secured, Yahsat announced the narrowing of the range of its FY2022 revenue guidance. The group expects annual revenues of at least AED 1,542 million with the upper end of the range unchanged at AED 1,616 million.